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Principles of Agency and Authority Quiz

#1

What is the primary role of an agent in the context of agency law?

To make decisions on behalf of the principal
Explanation

Agent acts on behalf of the principal.

#2

What distinguishes a general agent from a special agent in agency relationships?

General agents have broader authority than special agents
Explanation

General agents have wider authority scope.

#3

What is the doctrine of 'unauthorized acts' in agency law?

Acts performed by an agent without any authority
Explanation

Unauthorized acts are actions without authority.

#4

In agency law, what is the term for the authority that is expressly given by the principal to the agent?

Express authority
Explanation

Express authority is explicitly given by the principal.

#5

What is the significance of the agent's duty of loyalty in agency relationships?

To act in the best interests of the principal
Explanation

Agent's duty of loyalty: act in principal's best interests.

#6

Which of the following is a key element of agency by estoppel?

Apparent authority
Explanation

Agency by estoppel involves apparent authority.

#7

What is the significance of the 'scope of authority' in agency relationships?

It determines the range of actions the agent is authorized to take
Explanation

Scope of authority defines authorized actions.

#8

Which of the following is a common duty of an agent towards the principal?

To act in the best interests of the principal
Explanation

Agent duty is to act in principal's best interests.

#9

What is the concept of 'vicarious liability' in agency law?

Liability imposed on the principal for the agent's wrongful acts
Explanation

Principal is liable for agent's wrongful acts.

#10

Which type of authority arises when a principal leads a third party to believe that an agent has authority, even if it's not explicitly granted?

Apparent authority
Explanation

Apparent authority arises from the principal's conduct.

#11

In agency law, what is the term for the termination of an agent's authority by the principal?

Revocation
Explanation

Revocation ends the agent's authority.

#12

Which doctrine holds a principal liable for the acts of an agent, even if the agent exceeds their authority?

Doctrine of Respondeat Superior
Explanation

Respondeat Superior holds principal liable for agent's acts.

#13

In agency relationships, what is the term for an agent's authority to do things that are reasonably necessary to accomplish the authorized acts?

Implied authority
Explanation

Implied authority allows reasonable necessary actions.

#14

Under what circumstances can an agency relationship be terminated by operation of law?

Death or incapacity of the principal or agent
Explanation

Termination by operation of law: death or incapacity.

#15

What is the role of consideration in the creation of agency relationships?

It is necessary for the creation of agency relationships in certain cases
Explanation

Consideration is required for agency creation in some cases.

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